The typical non-elderly single person with individual market or exchange coverage spends $4,950 per year (19% of their $26,025 income) on health.

Direct Spending on Healthcare

The typical non-elderly single person with individual market or exchange coverage spends $4,950 per year (19% of their $26,025 income) on health. This includes $1,750 (7% of their income) in out-of-pocket health spending, $1,850 (7% of their income) in health insurance premiums, and approximately $1,350 (5% of their income) in state and federal taxes that fund health programs.

Additional Contributions by Employers

In this scenario, we estimate that the employer is contributing an additional $400 in Medicare payroll taxes, not shown in the chart above. When combined, this person’s spending on health care and the money spent by their employer on their behalf totals $5,350.